While Blackstone and KKR have been talked about as the faces of alternative asset management in recent years, one player has quietly taken the private credit crown - a Los Angeles firm. Led by co-founder Michael Arougheti, it manages $644 billion in assets and surpassed $1 billion in management fees per quarter for the first time ever in the first quarter of 2026. Yet the stock has fallen by about a third over the past twelve months and trades well below analysts' consensus price target.

The market is addressing a simple question: is the price drop an opportunity to buy a quality compounder with 20% dividend growth at a reasonable price, or a warning sign that the golden era of private credit is ending and trading at deservedly more modest multiples?

TOP points of analysis

• Record Q1 2026: AUM reached $644bn (+18% YoY), management fees topped $1bn for the first time ever in a quarter and fee-related earnings grew 26%.

• Despite the record, the stock has fallen by about a third over the past…